Coverage Architecture

Trade Credit Insurance Policy Types: Whole Turnover, Key Account, Single Buyer, Excess of Loss & Export

Whole turnover policies

The default structure worldwide: all eligible credit sales are declared and insured. Spreading premium across the full book buys the best rate per dollar of exposure and eliminates adverse selection debates with the underwriter. Whole turnover is also the form lenders prefer, because every account in the borrowing base carries coverage. Expect conditions governing declarations, discretionary limits and stop-shipment discipline. Best for: distributors, manufacturers and traders with dozens to thousands of active buyers.

Multi-buyer policies

The workhorse of the U.S. and export markets: a defined schedule of insured buyers — typically your active credit accounts above a threshold — each carrying its own credit limit under one policy. Multi-buyer sits between whole turnover and key-account: broader than a handful of names, but without whole-turnover’s obligation to declare every eligible sale. It is the natural form where a portion of the book is cash, card or affiliated business that needs no cover, and it is the standard structure for export programs insuring a portfolio of foreign obligors. Premium is usually calculated on sales declared to the scheduled buyers. Best for: sellers with a defined universe of open-account names, and exporters building coverage around their foreign buyer list.

Key account / named buyer policies

Covers a schedule of named accounts — usually the buyers whose individual failure would genuinely wound the company. A ledger where ten names represent 70% of exposure often does not need premium spent on the long tail. The underwriter will test the selection (insuring only the names you are worried about invites anti-selection pricing), but a rational concentration story earns efficient terms. Best for: concentrated portfolios and firms with strong internal credit management on small accounts.

Single buyer policies

One policy, one obligor, one limit. Purchased for a dominant customer relationship, a large supply contract, or a significant first sale into an unfamiliar market. Pricing is name-specific: the entire premium rides on one credit, so financial disclosure on the buyer drives everything. Best for: contract manufacturers with anchor customers; exporters landing a transformative order.

Excess of loss and captive top-up

The sophisticated-insured structure: your company retains an aggregate annual deductible sized to absorb expected, budgetable credit losses, and the policy responds to the unexpected — the failure of a major name or a cluster of losses in a downturn. Underwriters grant substantial discretionary authority because the retention keeps your incentives aligned. Variants sit above a captive layer. Best for: larger firms with a professional credit department and credible loss data.

Export credit and political risk forms

For foreign receivables the commercial perils travel with the invoice, and political perils join them: currency inconvertibility and transfer restriction (the buyer pays in local currency but the funds cannot lawfully leave), import/export license cancellation, war and civil disturbance, and default of public (government) buyers. Waiting periods run longer for political perils. Documentation discipline — Incoterms, governing law, proof of delivery valid in the buyer’s jurisdiction — determines claim success. Our San Juan and Santo Domingo desks underwrite Latin American obligors in Spanish, with local documentary standards in view.

Structure selection at a glance

Structure	Covers	Relative rate	Chosen when
Whole turnover	Entire eligible ledger	Lowest per dollar	Broad book; lender involvement
Multi-buyer	Named schedule of buyers	Low–moderate	Defined open-account universe; export programs
Key account	Named largest buyers	Moderate	Ten names dominate exposure
Single buyer	One obligor	Name-specific	One relationship is the risk
Excess of loss	Portfolio above aggregate retention	Low, high attachment	Strong internal credit function
Export / political	Foreign receivables + political perils	Country-driven	Cross-border open account sales